June 12, 2024
National Pork Producers Council urges US Senate Finance Committee to renew trade preference programmes
In written testimony submitted to the US Senate Finance Committee, the US National Pork Producers Council (NPPC) has urged the renewal of US trade preference programmes that have historically provided leverage during market access negotiations, National Hog Farmer reported.
NPPC's testimony highlighted the US Generalised System of Preferences (GSP) and the African Growth and Opportunity Act (AGOA), which allow duty-free imports from eligible countries into the US. As a condition of eligibility, these beneficiary nations must provide "reasonable and equitable" market access to US products. The GSP expired at the end of 2020, while AGOA is set to expire in 2025.
The GSP, primarily granted to developing countries, is a crucial tool for US trade negotiators to persuade other nations to eliminate trade barriers and open their markets to US goods. NPPC supports legislation (H.R. 7986) sponsored by Rep Adrian Smith (R-NE) to renew the programme through December 31, 2030. This bill also enhances enforcement mechanisms, requiring GSP beneficiary countries to adopt science-based standards and provide open market access for US agriculture.
Similarly, AGOA grants sub-Saharan African countries duty-free access to the US, helping expand US trade and investment in the region, stimulate economic growth, and facilitate the region's integration into the global economy.
NPPC advocates for the renewal of AGOA and has highlighted South Africa and Nigeria as examples of countries that impose ongoing, non-scientific restrictions on US pork, severely limiting exports. NPPC recently urged the Office of the US Trade Representative to withhold AGOA benefits from these countries due to these restrictions.
Additionally, NPPC called on lawmakers to renew the Miscellaneous Tariff Bill (MTB), which temporarily reduces or eliminates US tariffs on products that are not available domestically but are needed by US producers. Though not a trade preference programme, the MTB supports US exports and expired in December 2020.
In its latest Capital Update, NPPC emphasised the importance of gaining and expanding market access globally for the growth of the US pork industry. Exports contribute significantly to producers' bottom line, accounting for more than 25% of US pork production. In 2023, the industry exported more than 2.9 million metric tonnes valued at US$8.16 billion to over 100 nations, equating to about US$64 in value from each swine marketed last year.
- National Hog Farmer
